Full question:
If a company requires you to go and get certifications for your job, are they required to pay for books, training, testing, and your time?
- Category: Employment
- Date:
- State: National
Answer:
Generally, unless required by an employment or union contract, training expense reimbursement is a matter of discretion for the employer. If training expenses are paid by the employee and not reimbursed, they may be able to be deducted on the employee's tax return. This deduction, however, would be subject to the 2 percent of AGI limitation, along with most other miscellaneous itemized deductions you list on Form 1040, Schedule A, Itemized Deductions.
You can deduct expenses you have for education, even if the education may lead to a degree, if the education meets at least one of the following two tests.
* It maintains or improves skills required in your present work.
* It is required by your employer or the law to keep your salary, status, or job, and the requirement serves a business purpose of your employer.
You cannot deduct expenses you have for education, even though one or both of the preceding tests are met, if the education:
* Is needed to meet the minimum educational requirements to qualify you in your trade or business, or
* Is part of a program of study that will lead to qualifying you in a new trade or business.
If your education qualifies, you can deduct expenses for tuition, books, supplies, laboratory fees, and similar items, and certain transportation costs.
If the education qualifies you for a new trade or business, you cannot deduct the educational expenses even if you do not intend to enter that trade or business.
You cannot deduct professional accreditation fees such as the following. * Accounting certificate fees paid for the initial right to practice accounting.
* Bar exam fees and incidental expenses in securing initial admission to the bar.
* Medical and dental license fees paid to get initial licensing.
This content is for informational purposes only and is not legal advice. Legal statutes mentioned reflect the law at the time the content was written and may no longer be current. Always verify the latest version of the law before relying on it.
